News

The State Bank of Vietnam's master plan to restructure the banking system initiated in April has produced its first merger.

Global banks that outsource work overseas will be forced to step up supervision of back office operations after lapses involving Indian offshore units.

Hong Leong Islamic expects its debit cards to increase total deposits from RM75 million to RM200 million or US$64.13 million.

ABN AMRO will start providing its escrow and settlement services in Asia as it focuses its international growth on specialist businesses.

A massive drought is leading to a wave of farm loan defaults that threatens to boost the non-performing loans of Indian banks. The Reserve Bank of India, the central bank, however, claims Indian banks are resilient enough to weather the pressure on farm loans caused by the drought. “Whenever there is drought, there is a pressure (on farm loans). But we have sufficient rehabilitation measures so that banks can weather it out,” said RBI Deputy Governor K C Chakrabarty. He noted that India’s banking system has enough resilience and will be able to face the stress. The government will invoke the law and other schemes to meet the challenges of the \drought in several states. It noted that contingency plans are in place to help farmers replant alternate crops and to supply drinking water and fodder to farmers. Monsoon rains are relied upon to grow India’s crops but there was 20% less rain in June and July.

Spot checks will be carried out on South Korean Standard Chartered and HSBC Holdings over money laundering allegations.

Punjab National Bank has campaigned to mop up low-cost funds from retail customers.

India’s private banks have thumbed down a government proposal to pool their resources to service non-performing loans of individual banks.

Muslim Commercial Bank posted 7% increases in both profit before tax of Rs. 17.2 billion, and profit after tax of Rs. 11.3 billion.

The Export-Import Bank of Korea raised its credit line with Russia's OAO Sberbank to help finance South Korean companies' business projects.

United Overseas Bank Ltd reported a 12.1% increase in second quarter net profit to US$574 million.

Industrial Bank of Korea's second-quarter earnings went down 35.7 percent from a year earlier.

Bank Internasional Indonesia reported a 61 percent net income increase in the first half with Rp 592 billion or $63 million.

The rapidly rising leverage will constrain the banks' upward rating momentum, says Fitch.

Dividend cuts will be needed to fund regualtory capital increases.

BDO Unibank, the Philippines’ largest bank in terms of assets, looks to lower funding costs.